Entatech was close to being acquired before it went bust, with a prospective sale falling through on the day it was set to complete, according to an administrator’s report.
The adminstrators, KMPG, said that the preferred bidder pulled out of the deal on the day it was set to complete (5 May).
Entatech went into administration in May, after failing to secure a buyer following a sale process. However it was a near run thing.
The Entatech received interest from 130 investors and 30 trade parties, 17 partners expressed and interest and 10 signing non-disclosure agreements.
By the 21 April offer deadline there were two bids, including one from Entatech’s management, before a third bid was made on 26 April – which went on to be the preferred bid.
KMPG said that an acceptable offer was negotiated, contracts were progressed to final draft and solicitors were in funds.
“Completion was set for Friday 5 May 2017, but unfortunately the bidder confirmed on this date that it could not complete.”
Entatech went into administration and its assets were acquired by managing director Dave Stevinson’s GNR Technology.
According to the administrator’s report preferential creditors will be paid in full, while unsecured creditors are expected to receive a dividend of an unspecified amount.
